Duluth, MN (Northland's NewsCenter) - The financially troubled Duluth-based Internet Marketing and Web Design Company "50 Below" has filed for Chapter 11 Bankruptcy.
According to documents filed with US Bankruptcy Court on Wednesday, 50 Below has more than $12 million in unsecured claims, nearly $8.8 million of which is owed to the IRS, another $1 million to the Minnesota Department of Revenue.
The troubled past of the company dates back to 2000.
At one point, the company was investigated by the IRS for failing to pay employee taxes. Last November, a cash flow issue left some of the company's employees waiting more than a week to get their paychecks.
As part of this week's filing, 50 Below has secured an attorney and financial consultant to get the company back on track.
A meeting of the creditors is scheduled for October 5th in Duluth.
Filing for Chapter 11 Bankruptcy involves the reorganization of a debtor's business affairs and assets, typically giving the debtor a fresh start.
Attempts to reach the company's CEO, David Hogge, were unsuccessful Friday evening.